What To Do In A Bear Market To Ensure Wealth In The Next Bull Market
Understanding how a bear market differs from a bull market might help you prepare for it. A bear market, expressed simply, is one in which stock values have decreased by 20% from the consistent highs of a bull market. The market also becomes bullish whenever equities have increased 20% following the bottoming out of a bear market. The economy has a sudden catastrophe that sends it into recession and sends investors into a generalised panic, which is when the economy transitions from bull to bear. Uncertainty during a crisis turns into a full-blown fear, which causes investors to panic and sell. For instance, the current 2020 pandemic; the 2008–2009 financial crisis; and the 2000–2002 dot.com bust. Since 1900, there have been 33 bear markets, indicating that they are not unusual. Which makes understanding what to do in a bear market when it occurs much more crucial? It is essential to have a plan in place to handle it. Even better is having a tried and true one. Here are 9 crucial tactics and ideas that can not only help you survive a bear market but maybe even prosper in one: investment courses uk.